(DDM) – Nigeria has formalized a historic production-sharing agreement with global energy major TotalEnergies and indigenous oil company South Atlantic Petroleum (Sapetro), signaling renewed confidence in the country’s offshore oil potential and a major boost to its upstream sector.
Diaspora Digital Media (DDM) gathered that the contract covers Petroleum Prospecting Licences (PPLs) 2000 and 2001, stretching across 2,000 square kilometres in the deepwater Niger Delta Basin.
Under the agreement, TotalEnergies will hold an 80 percent interest in the licences, while Sapetro retains 20 percent, reflecting a strategic collaboration between international and local operators.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) confirmed that the agreement contains robust provisions for profit sharing, strict environmental safeguards, host community development commitments, and a comprehensive decommissioning plan to prevent ecological damage.
Officials emphasised that the contract aims to balance economic gains with environmental protection and community welfare.
Industry analysts estimate that the project could attract over $3 billion in investments over the next decade.
It is expected to generate thousands of skilled and unskilled jobs, ranging from engineering and technical roles to logistical and support services.
Production is anticipated to begin within the next two to three years, with early-phase output projected at 50,000 barrels of oil per day, potentially scaling up to over 100,000 barrels at full capacity.
The partnership with TotalEnergies is expected to bring advanced offshore exploration and drilling technologies to Nigeria, while Sapetro’s local expertise will ensure regulatory compliance, community engagement, and efficient operational management.
Analysts note that this deal will also help Nigeria reverse declining upstream investments and compete with emerging African oil producers, particularly Ghana, Angola, and Senegal.
Environmental and social governance (ESG) provisions in the contract are particularly noteworthy. NUPRC confirmed that the operators must implement stringent safety measures, prevent oil spills, and establish continuous environmental monitoring systems.
Host communities are slated to benefit from infrastructure development, educational support programs, and local capacity building initiatives designed to ensure that oil wealth contributes to long-term social and economic development.
Government officials attending the signing ceremony reiterated that the project aligns with national energy security goals and President Bola Tinubu’s agenda to attract foreign investment, promote technology transfer, and expand Nigeria’s hydrocarbon production base.
The Ministry of Petroleum Resources highlighted that the contract would also boost government revenues through royalties, profit shares, and taxes, estimated to generate hundreds of millions of dollars annually for the national treasury.
Observers say this landmark deal could redefine Nigeria’s position in the global oil market, signaling a renewed era of strategic partnerships that combine foreign capital, local expertise, and environmental responsibility.
The successful execution of this project may also serve as a template for future upstream agreements across Nigeria’s deepwater basins, further cementing the country’s leadership in Africa’s energy sector.
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